{"id":76627,"date":"2024-05-17T17:42:00","date_gmt":"2024-05-17T10:42:00","guid":{"rendered":"https:\/\/neu.edu.vn\/nld-com-vn-prof-dr-hoang-van-cuong-auctions-also-drive-gold-prices-higher\/"},"modified":"2024-05-17T17:42:00","modified_gmt":"2024-05-17T10:42:00","slug":"nld-com-vn-prof-dr-hoang-van-cuong-auctions-also-drive-gold-prices-higher","status":"publish","type":"post","link":"https:\/\/neu.edu.vn\/en\/nld-com-vn-prof-dr-hoang-van-cuong-auctions-also-drive-gold-prices-higher\/","title":{"rendered":"Nld.com.vn: Prof. Dr. Hoang Van Cuong: Auctions Also Drive Gold Prices Higher"},"content":{"rendered":"

(NL\u0110O)\u2013 Prof. Dr. Hoang Van Cuong, Member of the National Assembly\u2019s Finance and Budget Committee, Says That, in Some Respects, Gold Bar Auctions Also Drive Gold Prices Higher<\/h2>\n
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On May 17, at the seminar \u201cPolicy Dialogue: Stabilizing the Gold Market, Maintaining Macroeconomic Stability, and Building Momentum for Recovery amid Uncertainty,\u201d organized by the Vietnam Institute for Economic and Policy Research (VEPR), Dr. Le Xuan Nghia, Member of the National Financial and Monetary Policy Advisory Council, repeatedly emphasized that \u201cgold is nothing extraordinary; the market should be allowed to regulate it.\u201d<\/p>\n

\n
\"Prof.<\/a><\/div>
\n

A view of the seminar \u201cPolicy Dialogue: Stabilizing the Gold Market, Maintaining Macroeconomic Stability, and Building Momentum for Recovery amid Uncertainty.\u201d Photo: The World and Vietnam<\/p>\n<\/figcaption><\/figure>\n

According to Nghia, gold is considered a very ordinary commodity around the world. In Vietnam, by contrast, gold has become something \u201cextraordinary,\u201d and on quite a few occasions, it has caused panic. Concerns about \u201cgoldization\u201d only arise when gold is deposited in commercial banks, at which point \u201cmoney will generate money,\u201d Nghia said.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n

The monopoly on SJC gold bars has existed for many years. Previously, there was no major gap between domestic and global gold prices. Since 2020, however, the gap has continued to widen, reaching an unreasonable level, according to Nghia.<\/p>\n

He questioned whether this was due to a supply-demand imbalance or other factors, given that the monopoly policies on SJC gold bars and gold imports and exports have remained in place, yet major fluctuations and a widening price gap have emerged only in recent years.<\/p>\n

Citing World Gold Council estimates, Nghia said domestic gold demand is around 50 metric tons per year, raising the question of where the gold comes from if it is not imported. The expert noted that gold smuggling did occur before 2020.<\/p>\n

\n
\"Prof.<\/a><\/div>
<\/figcaption><\/figure>\n

Dr. Le Xuan Nghia shares information about the gold market<\/p>\n

Since 2020, when the COVID-19 pandemic began, gold smuggling routes have \u201cbecome more difficult to use.\u201d At the same time, a series of gold smuggling cases were uncovered, meaning that \u201csupplies entering Vietnam from abroad\u201d were no longer what they had been.<\/p>\n

Dr. Le Xuan Nghia therefore argued that the lack of supply has partly contributed to the price gap. In addition, as other investment channels have become more challenging and savings interest rates remain low, people have chosen gold as an investment, driving demand higher.<\/p>\n

Dr. Le Xuan Nghia said gold should be allowed to return to a \u201cnormal\u201d state, as there is nothing so extraordinary about it as to warrant the policy responses seen recently.<\/p>\n

Sharing this view, Prof. Dr. Hoang Van Cuong, National Assembly Deputy and Member of the National Assembly\u2019s Finance and Budget Committee, said the domestic gold market has become far too disconnected from the global market. The state monopoly on gold imports and exports and gold bar trading has further widened that separation.<\/p>\n

Cuong said that the state monopoly and protection afforded to the SJC brand give people greater confidence, making their preference for this type of gold understandable, even as supply remains limited.<\/p>\n

Prof. Dr. Hoang Van Cuong also highlighted the paradox that gold prices surged immediately after the State Bank of Vietnam (SBV) held auctions. Based on this outcome, Cuong argued that the auction approach had failed to achieve its goal of cooling domestic gold prices.<\/p>\n

Prof. Dr. Hoang Van Cuong observed that, in some respects, auctions also drive gold prices higher. According to Cuong, using domestic market prices as the reference price for auctions is inappropriate and unlikely to bring domestic prices down as intended. For auctions to achieve their objective, Cuong said the SBV should examine using global gold prices, plus taxes and costs, to determine the reference price.<\/p>\n

Minh Chien<\/p>\n

Link: https:\/\/nld.com.vn\/gs-ts-hoang-van-cuong-viec-dau-thau-con-la-tac-nhan-day-gia-vang-len-cao-hon-196240517125139129.htm<\/a><\/p>\n

This is an automated translation. If you notice any errors, please contact the Department of Communications, National Economics University at phongtruyenthong@neu.edu.vn<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

(NL\u0110O)\u2013 Prof. Dr. Hoang Van Cuong, Member of the National Assembly\u2019s Finance and Budget Committee, Says That, in Some Respects, Gold Bar Auctions Also Drive Gold Prices Higher On May 17, at the seminar \u201cPolicy Dialogue: Stabilizing the Gold Market, Maintaining Macroeconomic Stability, and Building Momentum for Recovery amid Uncertainty,\u201d organized by the Vietnam Institute for Economic and Policy Research (VEPR), Dr. Le Xuan Nghia, Member of the National Financial and Monetary Policy Advisory Council, repeatedly emphasized that \u201cgold is nothing extraordinary; the market should be allowed to regulate it.\u201d A view of the seminar \u201cPolicy Dialogue: Stabilizing the Gold Market, Maintaining Macroeconomic Stability, and Building Momentum for Recovery amid Uncertainty.\u201d Photo: The World and Vietnam According to Nghia, gold is considered a very ordinary commodity around the world. In Vietnam, by contrast, gold has become something \u201cextraordinary,\u201d and on quite a few occasions, it has caused panic. Concerns about \u201cgoldization\u201d only arise when gold is deposited in commercial banks, at which point \u201cmoney will generate money,\u201d Nghia said. The monopoly on SJC gold bars has existed for many years. Previously, there was no major gap between domestic and global gold prices. Since 2020, however, the gap has continued to widen, reaching an unreasonable level, according to Nghia. He questioned whether this was due to a supply-demand imbalance or other factors, given that the monopoly policies on SJC gold bars and gold imports and exports have remained in place, yet major fluctuations and a widening price gap have emerged only in recent years. Citing World Gold Council estimates, Nghia said domestic gold demand is around 50 metric tons per year, raising the question of where the gold comes from if it is not imported. The expert noted that gold smuggling did occur before 2020. Dr. Le Xuan Nghia shares information about the gold market Since 2020, when the COVID-19 pandemic began, gold smuggling routes have \u201cbecome more difficult to use.\u201d At the same time, a series of gold smuggling cases were uncovered, meaning that \u201csupplies entering Vietnam from abroad\u201d were no longer what they had been. Dr. Le Xuan Nghia therefore argued that the lack of supply has partly contributed to the price gap. In addition, as other investment channels have become more challenging and savings interest rates remain low, people have chosen gold as an investment, driving demand higher. Dr. Le Xuan Nghia said gold should be allowed to return to a \u201cnormal\u201d state, as there is nothing so extraordinary about it as to warrant the policy responses seen recently. Sharing this view, Prof. Dr. Hoang Van Cuong, National Assembly Deputy and Member of the National Assembly\u2019s Finance and Budget Committee, said the domestic gold market has become far too disconnected from the global market. The state monopoly on gold imports and exports and gold bar trading has further widened that separation. Cuong said that the state monopoly and protection afforded to the SJC brand give people greater confidence, making their preference for this type of gold understandable, even as supply remains limited. Prof. Dr. Hoang Van Cuong also highlighted the paradox that gold prices surged immediately after the State Bank of Vietnam (SBV) held auctions. Based on this outcome, Cuong argued that the auction approach had failed to achieve its goal of cooling domestic gold prices. Prof. Dr. Hoang Van Cuong observed that, in some respects, auctions also drive gold prices higher. According to Cuong, using domestic market prices as the reference price for auctions is inappropriate and unlikely to bring domestic prices down as intended. For auctions to achieve their objective, Cuong said the SBV should examine using global gold prices, plus taxes and costs, to determine the reference price. Minh Chien Link: https:\/\/nld.com.vn\/gs-ts-hoang-van-cuong-viec-dau-thau-con-la-tac-nhan-day-gia-vang-len-cao-hon-196240517125139129.htm This is an automated translation. If you notice any errors, please contact the Department of Communications, National Economics University at phongtruyenthong@neu.edu.vn.<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[724],"tags":[],"class_list":["post-76627","post","type-post","status-publish","format-standard","hentry","category-economic-information","post-no-thumbnail"],"acf":[],"_links":{"self":[{"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/posts\/76627","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/comments?post=76627"}],"version-history":[{"count":0,"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/posts\/76627\/revisions"}],"wp:attachment":[{"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/media?parent=76627"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/categories?post=76627"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/tags?post=76627"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}